Lotto-Seeking Pickup Tribe Disappears... Balcony Expansion "Bundled Sales" Also Banned

Notice of Legislative Proposal for Amendment to Housing Supply Rules
Expansion of Eligibility for Non-Priority Quota Applicants
Adults → Adult Non-Homeowners in Relevant City/County
Amendment Scheduled for Promulgation and Enforcement by End of March

(Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] Starting from March, the qualification for the so-called 'Jumjum' (random non-priority subscription) system, which supplies remaining apartment units through a random draw, will be limited to non-homeowners. As a result, the overheating phenomenon where hundreds of thousands of people flock to non-priority units aiming for 'lottery subscriptions' is expected to be resolved.

Additionally, the practice where developers or project owners force buyers to collectively select options such as balcony extensions, shoe cabinets, and built-in wardrobes, thereby charging excessive costs, will be prohibited.

The Ministry of Land, Infrastructure and Transport announced on the 21st that it will publicly notify a partial amendment to the 'Housing Supply Regulations' containing these measures on the 22nd.

According to the amendment, the practice of project owners forcing buyers to select additional options collectively will be blocked.

Until now, project owners often presented integrated additional options such as balcony extensions, shoe cabinets, built-in wardrobes, system windows, refrigerator cabinets, and upper and lower kitchen cabinets as a single choice.

In such cases, the project owner only allowed balcony extensions if the 'integrated balcony' option was selected, and otherwise refused contracts, effectively forcing buyers to select all options.

Currently, housing subject to the price ceiling system restricts the collective selection of balconies and other options according to the 'Regulations on the Calculation of Apartment Sale Prices,' but there are no such restrictions for general housing.

Therefore, the Ministry of Land, Infrastructure and Transport has newly established regulations that require project owners to present additional options separately by item for all housing they supply and prohibit forcing buyers to select two or more additional options collectively.

To enhance effectiveness, approval authorities such as market, county, and district heads will be required to verify whether additional options are presented individually when approving resident recruitment.

The amendment also includes measures to expand the eligibility for applying for non-priority units. Currently, non-priority units arising from contract cancellations can be applied for by any adult regardless of homeownership status. This has led to excessive applications aiming for market price gains, raising concerns about high competition rates.

Accordingly, the Ministry of Land, Infrastructure and Transport changed the eligibility for non-priority units from 'adults (no regional restrictions)' to 'adults who are members of non-homeowner households in the housing construction area (city or county).' This aims to expand opportunities for non-homeowners residing in the area.

If non-priority units are supplied in regulated areas, re-winning restrictions of 10 years in speculative overheating districts and 7 years in adjustment target areas will be applied, just like general subscriptions.

The supply price range for contract-canceled housing due to illegal resale has also been set. Currently, housing acquired by project owners due to contract cancellations caused by illegal resale or supply order disturbances is resupplied after separate resident recruitment approval. The Ministry clarified regulations so that the resupply price is determined within the range of the acquisition cost of the housing or the initially announced sale price.

In addition, to establish a supply order focused on actual demanders, the Ministry excluded those owning two or more houses from special supply targets.

The Ministry plans to publicly notify the amendment for 40 days until March 3rd and promulgate and implement the amendment around the end of March.

This content was produced with the assistance of AI translation services.